The euphoric sentiment of the oil palm industry in 2007 till first half of 2008, generated by the historic high prices of crude palm oil (CPO) as influenced by the price escalation of fossil fuel and biofuel, has very quickly vaporized and been replaced by an awakening call for prudence. Inorganic fertilizer prices soared concurrently to historic high levels as well. Notwithstanding the problem of uncertainty that led to non-timely supply and delivery, the cost of fertilizer inputs in oil palm plantations has doubled to 50%-60% of the cost of fresh fruit bunch (FFB) production. Profitability of the oil palm plantation business is consequently squeezed as the business remains as a price taker for its produce and the purchase of inorganic fertilizers. The Malaysian oil palm industry’s dependence on inorganic fertilizer imports can only be partially mitigated by the use of organic fertilizers produced within the country. Recycling of solid and liquid wastes from palm oil mills is the logical alternative, and accepted as a standard good agricultural practice in the industry. There are, however, some obvious limitations in their utilization which must not be overlooked, particularly when the industry is moving toward sustainable development. The industry in Malaysia is poised to adopt awholesome green technology approach with several options that can achieve multiple objectives. Cocomposting of empty fruit bunches (EFB) and palm oil mill effluent (POME) has the highest attractiveness while at the same time the compost / organic fertilizer produced can be applied over a much bigger area, especially in those areas of poorer growing conditions, that can benefit significantly in growth/yield as compared to what may be expected from the current EFB mulching and irrigation with treated POME. Concurrently, biogas capture with and without generation of renewable energy enhances CO2 emission reduction above the criterion of 35% as set by the EU Commission on Renewable Energy. Thus, palm oil will qualify as a feedstock for biofuel in the European market. The continuation of the clean development mechanism (CDM) beyond 2012 with the carbon credit incentive is critical for more ready adoption by the industry members. Composting systems and usage of compost for substitution of inorganic fertilizer, and the impact of compost on yield enhancement are described in the article. The 4 Rs approach to fertilizer management is also discussed in relation to compost usage. The oil palm industry is strongly urged to adopt the good agricultural practice of establishing leguminous cover crops for N fixation without fail in all new plantings/replantings. The choice of Mucuna bracteata over other conventional leguminous cover crops is strongly emphasized for reasons discussed. The potential usage of biochar, derivable from the oil palm biomass, is also highlighted as an area of research that can lead to its future exploitation for soil fertility improvement and long-term sequestration of CO2 in the soil.